Sugar Substitute Market Trends – Low-Calorie Sweeteners & Demand 2023 to 2033

Sugar Substitute Market Outlook 2023 to 2033

The worldwide forecast for the Sugar Substitute Market Outlook 2023 to 2033 expects a modest expansion, with a market size estimated at USD 17.13 billion in 2023. The estimated CAGR of 5.2% from 2023 to 2033 suggests that the global worth of the sugar substitute market is anticipated to soar to an impressive USD 28.57 billion by 2033.

Key Market Highlights

Sugar Substitute Market poised to Grow amidst Diabetes-prone World Population

The world today is grappling with escalating lifestyle-related diseases like diabetes, obesity, and hypertension. As health-related information becomes easily accessible to laypeople, thanks to the internet and short video platforms, the market has experienced a noticeable shift toward healthier alternatives like artificial sweeteners such as stevia, monk fruit extract, and erythritol.

These substitutes are considered lower in calories and do not elevate sugar levels in the blood.

According to the World Health Organization, about 42.2 crore people worldwide have diabetes, and nearly 15 lakh deaths are directly attributed to diabetes yearly. Many individuals are also trying to keep their weight in check, and sugar substitutes allow them to enjoy sweet-tasting foods and beverages without the ill effects of regular sugar.

As people seek ways to reduce their sugar consumption, the sugar substitute market will continue to grow to meet this demand.

Major drivers of the Sugar Substitute Market:

• Changing dietary preferences is the major consumer shift towards sugar substitutes. With readily available information regarding the benefits of these products, consumers are likely to opt for healthier options.
• Sugar substitutes are also used in the food and beverage industry, branding the products made using them as ‘zero-calorie,’ ‘low-saturated fats,’ and many more. Consumers seeking such healthier options contribute significantly to the overall sugar substitute market.
• Governments in some countries have levied ‘sugar taxes’ to discourage the consumption of sugar and sugar-infused food and beverages. This makes promoting sugar substitutes easier for brands, thus bringing more people into the consumer pool.
• To fulfill this everlasting demand, manufacturers across the world are investing heavily to come up with the perfect sugar substitute that mimics the taste, texture, and health benefits of sugar.
• The availability of sugar substitute products in the e-commerce and supermarket retail businesses in developed and emerging economies has resulted in the exponential growth of the sugar substitute market in recent years.

Attributes	Key Statistics
Expected Base Year Value (2023)	USD 17.13 billion
Anticipated Forecast Value (2033)	USD 28.57 billion
Estimated Growth (2023 to 2033)	5.2% CAGR

Historical Analysis of the Sugar Substitute Market

The sugar substitute market is highly dependent on people’s perception of the caloric content they intake in every serving. Consumers become more aware of their sugar intake and look for healthier options.

In the last few years, the market has seen a considerable surge due to multiple alternatives for natural sugar, easy availability due to robust e-commerce businesses, rising chronic diseases, and increased government initiatives to combat obesity and related health issues.

This combination of factors has fueled a significant expansion in the sugar substitute market.

Companies in the sugar substitute market are rigorously pushing products under healthy labels as they appeal to a wider consumer base. There is also a trend of artificial sweeteners being made from organic and natural synthesizers in the market. The market for sugar substitutes, thus, is going through a gradual rise and is anticipated to expand exponentially in the coming future.

Attributes	Key Statistics
Expected Base Year Value (2018)	USD 14.09 billion
Anticipated Forecast Value (2022)	USD 17.13 billion
Estimated Growth (2018 to 2022)	5.0% CAGR

Factors Adversely Affecting the Sugar Substitute Market

• Many artificial sweeteners are still not able to exactly replicate the taste and the mouthfeel of regular sugar. Sugar replacement products such as liquid sugar cannot give the desired texture consumers want in their delicacies, which deters them from going for sugar alternatives.
• There is still much misinformation regarding artificial sweeteners like aspartame or saccharin in the market. Although scientific research has proved these myths to be untrue, negative publicity in the minds of individuals negatively impacts the sugar substitute market.
• Sweetening solutions like plant-based or diabetic-friendly sugar products are relatively more expensive than regular ones. In recessionary economies and underdeveloped countries, consumers seek cheaper alternatives to satisfy their sweet tooth.
• The applications of artificial sweeteners in the food and industry market are also very limited. Other than energy drinks and a few snack items, sweetening solutions have no significant solution in the industry.
• Although, in some countries, the government is actively promoting diabetes-free sugar products, the regulatory challenges and approval process in some nations, such as restrictions or bans on specific sweeteners, have adversely impacted the availability of certain products.

Category-wise Insights

Artificial Sugar Substitutes overpowers Natural Alternatives in the last few years

Artificial sweeteners like aspartame, sucralose, saccharin, acesulfame potassium, neotame, cyclamate, and many more are preferred over natural sugar substitutes due to their varied application in the food and beverage industry, long shelf life, and easy availability.

When it comes to product type, the sugar substitute market is divided into two: Natural and Artificial, with the latter dominating the revenue market with a global share of 65.4%.

Artificial sweeteners also provide sweetness without the calories found in natural sugar. This low-calorie factor gives them a slight advantage over naturally procured sweetening solutions like stevia, monk fruit extract, honey, etc.

Artificial sweeteners also do not significantly impact blood sugar levels, making them suitable for people with diabetes, the largest consumer pool in the sugar substitutes market.

Attributes	Details
Product Type	Artificial
Market Share	65.4%

Artificial sugar substitutes are relatively inexpensive than plant-based sweetening solutions, making them more accessible to cost-sensitive consumers.

As the majority of people dealing with diabetes are in the low-income group, this financial edge of artificial sweeteners over natural ones contributes significantly to the overall sugar substitute market. Key players in the market have also invested extensively in curating the desired taste and texture so that their products accurately mimic regular sugar.

Sweet Success of Sugar Substitutes in the Food and Beverage Industry

Diabetic-friendly sweeteners have a wide range of applications in the food and beverage industry, as they are used to provide sweetness while reducing or eliminating the use of sugar.

By end-use, the food and beverage industry forms the largest consumer pool in the overall sugar substitute market, with a global share of 69.40%. The demand for artificial sweeteners is very likely to surge as they are used in the production of diet sodas, carbonated drinks, ready-to-serve juices, etc.

As weight management and calorie-deficit diets become more prevalent, consumers prefer packaged food with low sugar content. Well-established food and beverage industry players are experimenting with low-calorie sweetening agents in their popular food items to cater to these consumer groups.

To remain competitive, even the smaller brands are capitalizing on using sugar substitutes, contributing to the overall sugar substitute market.

Attributes	Details
End Use	Food and Beverage
Market Share	69.4%

The demand for sugar alternatives in the food items consumed on a daily basis has also made a huge impact on the sugar substitute market. Sugar-free chewing gums, candies, chocolate bars, biscuits, and ice creams are prominently found on the aisles of almost all the retail supermarkets and stores.

With proper strategy and labeling, key players in the market can leverage this opportunity to expand their product portfolio in a very effective way.

Country-wise Insights

Sugar Substitute products become American Sweet Tooth’s new Favorite

The United States has one of the largest populations of patients diagnosed with type-1 and type-2 diabetes. There is also a significant presence of individuals dealing with obesity and problems related to it. In such situations, it is evident that the demand for products made from sugar substitutes is bound to touch the skies.

Country	The United States
Value Share in 2023	33.2%

The United States holds the largest revenue share of 33.2% of the global sugar substitute market. The food and beverage industry in the United States has responded to consumer demand for reduced sugar options by incorporating sugar substitutes into a wide range of products such as diet sodas, sugar-free snacks, and low-sugar versions of popular foods and beverages.

Rising Obesity and Diabetes Rates shift Consumers to Opt for Sugar-free Options

China has witnessed a rise in obesity rates and diabetes cases, partly due to changing dietary habits and lifestyles. This health concern has prompted many individuals to look for sugar-free or reduced-sugar options, driving the demand for sugar substitutes. China is the second largest consumer of sugar substitute market with a global share of 14.7%.

Country	China
Value Share in 2023	14.7%

The country's sheer population is also one of the main reasons for this tremendous growth in the sugar substitute market. The government, too, has initiated various policies to address public health concerns related to sugar consumption.

These campaigns are aimed at creating awareness amongst the masses to reduce sugar intake, which has also impacted the sugar substitute market in China.

Low-calorie sweeteners find their place in Europe’s Diverse Culinary Cultures

German cuisine is highly influenced by European culinary culture, which includes various food items that contain sugar. Owing to this factor, there is a noticeable shift in the consumption patterns of people residing in Germany as Western culture adopts the use of artificial sweeteners in their cuisine. Evidently, Germany holds a market value of 8.3% of the global sugar substitute market.

Country	Germany
Value Share in 2023	8.3%

The German and other European governments have implemented measures to combat excessive sugar consumption, including sugar taxes and regulations. These initiatives have encouraged consumers to choose products sweetened with sugar substitutes.

Competitive Landscape of the Sugar Substitute Market

As per the study conducted by Future Market Insights, the market for sugar substitutes has reached a level where it has opened doors for a lot of innovations and expansion. There is a presence of numerous international brands that have successfully penetrated global markets because of the booming e-commerce businesses in emerging economies.

Government initiatives to reduce the overall consumption of sugar are contributing significantly to the global sugar substitute market. This has not only benefited for consumers but also for businesses as well. With more initiatives like this, artificial sweeteners will soon have a strong foothold in the food industry.

Key Developments in the Sugar Substitute Market:

• On January 26, 2023, the USA Food and Drug Administration (FDA) approved allulose as a new food additive. Allulose is a low-calorie sugar substitute found naturally in fruits and vegetables. It has a sweetness similar to sugar but does not raise blood sugar levels.
• Biofect Innovations, a Canadian start-up, has found a way to turn things like lactose, starch, and glycerol into a protein-based sweetener called brazzein, which is a couple of thousand times sweeter than sugar and healthier too.
• Singapore startup Alchemy Foodtech has introduced a sweetener for food companies to replace sugar and reduce product calories. In February, Subway launched the Chocolate Chip Cookie Siew Dai, featuring Alchemy SweetFibre, which reduced the biscuit's sugar content by almost half.

Key Companies in the Sugar Substitute Market

• Tate & Lyle
• Cargill
• Archer Daniels Midland Company (ADM)
• Ingredion Incorporated
• Roquette Frères
• Ajinomoto Co., Inc.
• JK Sucralose Inc.
• The NutraSweet Company
• PureCircle
• E. I. DuPont De Nemours

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033
• 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Source
  • 5.1. Natural
  • 5.2. Artificial
• 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type
  • 6.1. High-Intensity Sweeteners
    • 6.1.1. Stevia
    • 6.1.2. Aspartame
    • 6.1.3. Cyclamate
    • 6.1.4. Sucralose
    • 6.1.5. Saccharin
    • 6.1.6. ACE-K
    • 6.1.7. Other HIS (glycyrrhizin, alitame, and neotame)
  • 6.2. High Fructose Syrup
  • 6.3. Low-Intensity Sweeteners
    • 6.3.1. D-tagatose
    • 6.3.2. Xylitol
    • 6.3.3. Maltitol
    • 6.3.4. Sorbitol
    • 6.3.5. Erythritol
• 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type
  • 7.1. Nutritive
  • 7.2. Non-Nutritive
• 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
  • 8.1. Food & Beverages
  • 8.2. Nutrition and Health Supplements
  • 8.3. Pharmaceuticals
  • 8.4. Cosmetics and Personal Care
• 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
  • 9.1. North America
  • 9.2. Latin America
  • 9.3. Western Europe
  • 9.4. Eastern Europe
  • 9.5. South Asia and Pacific
  • 9.6. East Asia
  • 9.7. Middle East and Africa
• 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
• 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
• 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
• 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
• 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
• 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
• 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
• 17. Key Countries Market Analysis
• 18. Market Structure Analysis
• 19. Competition Analysis
  • 19.1. Stevia Biotech Pvt. Ltd
  • 19.2. JK Sucralose Inc.
  • 19.3. Archer-Daniels-Midland Company
  • 19.4. DuPont
  • 19.5. Cargill, Incorporated
  • 19.6. Tate & Lyle
  • 19.7. Ingredion Incorporated
  • 19.8. Fooditive B. V.
  • 19.9. Stevia Biotech Pvt. Ltd
  • 19.10. Others
• 20. Assumptions & Acronyms Used
• 21. Research Methodology